Coal of Africa raises £38m for mining projects

South African miner Coal of Africa has done deals to raise up to £38.2m in a share issue, lifting its shares.Coal of Africa, which has several sites in Limpopo province, has reached conditional agreements with existing and new investors to raise the cash to pay off debt, modify its Vele colliery and fund its medium-term Makhado project.It also plans to raise further cash by offloading some non-core assets such as its Mooiplaats mine.Chief executive David Brown said: "We have allocated the resources into short, medium and long term growth projects."Shares rose 0.5p or 18.7% to 3.2p by 11:50 in London.PW